Exercise 11-6
Input
Annual demand, D 120,000
Cost per unit, C 500.00$
Holding cost, h 20%
Fixed cost per order, S 4,000$
Desired Order Size of 10,000
Desired optimal order size, Q* 10000
Required fixed cost S* 41,666.67$
Desired Order Size of 2,500
Desired optimal order size, Q* 2500
Required fixed cost S* 2,604.17$